So, the five types of accounts are used to record business transactions. The first three, assets, liabilities, and equity all go on the company balance sheet. The last two, revenues and expenses, show up on the income statement. In a corporation, capital represents the stockholders’ equity. Thus, the accounting formula essentially shows …
The example is added to assist the readers with an understanding of why there is a requirement to record bad debt entry and then why bad debt recovery happens from such debtor balance. Your income statement displays your business’s income and expenses. Use your updated accounting books to change your business’s expenses and net …
The reason for reclassification has to be disclosed either on the financial statements or by means of an explanatory note (footnotes). It is most often seen as a transfer journal entry & is a critical part of the final accounts of a business. In accounting, the term reclassification is often used to describe moving an amount […]
Many organizations consider this amount to be immaterial, and so will not record it. If the prevailing interest rate for fixed deposits is 7% per annum, Ms. Jane received 3,500 as interest at the end of the year. When the interest income is received, it increases the bank balance thus, an increase in assets is […]
When accepting a cash payment it’s important for the transfer of goods or services to occur at the same time (if applicable). Currently, people can still use cash or take advantage of websites and mobile apps that allow sending money electronically and for free. An invoice is a request for payment after goods or services […]
Select the appropriate checkbox for whether the donation was an item, made in cash, or via check, credit card, or money order. This donation receipt template includes a perforated section at the bottom for you to separate a miniature receipt with the pertinent details to keep for your records. Use this basic receipt template to […]